Alex Douglas has resigned as the Palmer United Party Queensland leader. Photo: Harrison Saragossi

“When I resigned from the LNP in November, 2012, I publicly stated there was a culture in the LNP, and there still is, of looking after mates and relatives, and that I do not support these flawed ideas,” he said.

“The public are crying out for politicians to be open, accountable, honest and are looking for committed community champions to represent them.

“The people are asking politicians to listen and advance those things they wish for themselves and their families, and they seek fairness.

“I cannot support, nor will I endorse, actions taken that defeat principles that I strongly adhere to.

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“I regret that I have had to take these actions, but I am reliably informed that a list of preselected candidates for the Queensland State election, will be announced today on the Palmer United Party’s website.

“I have had no involvement in the pre-selection of candidates.

“From my understanding, this process does not reflect principles which I firmly support.”

Dr Douglas later released a statement saying he would hold a press conference at 8.30am on Tuesday to further explain his decision.

Almost two hours later, federal leader Clive Palmer released his own statement, formally anointing the only remaining Queensland PUP parliamentary MP, Carl Judge, as leader, and announcing Jim MacAnally, who earlier this year was accused by LNP Gold Coast MP Michael Hart of offering him inducements to join the party, as the PUP candidate who will face Mr Hart in the upcoming election.

He later took to Twitter to claim Dr Douglas had quit the position because he wanted to merge PUP with Katter's Australian Party.

“Carl Judge knows you need to work as a team. The Palmer United Party has maintained integrity within the community in Queensland. The Palmer United Party and Carl Judge will deliver for the state of Queensland," Mr Palmer said in a statement.

“...Carl Judge has a strong commitment to Queensland and he has the character to lead the party to confront the many challenges the state now faces."

When contacted by Fairfax Media, Mr Judge, who also resigned from the LNP to join Clive Palmer's eponymous political party and will challenge Attorney-General Jarrod Bleijie's seat of Kawana at the next election, said in a text message he was at the movies. He quickly clarified that he was in his electorate office and had accidentally sent a pre-programmed "I'm at the cinema' text message as he dealt with calls about Dr Douglas's surprise move.

He said he learned of Dr Douglas's decision on Monday.

“It’s the disappointing that the situation has occurred. We will continue with the progression of the party,’’ he said.

"It is a challenging occupation and emotions can occur from time to time and that is normal," he said.

"...It is disappointing to me that Dr Douglas has resigned but I am sure that he will continue to represent his constituents and we’ll forge ahead with the job of getting the Palmer United Party to the state election in a very strong position to offer Queensland voters a better chance at democracy."

Premier Campbell Newman, who along with his deputy Jeff Seeney had regularly verbally sparred with Dr Douglas in parliament, declined to comment on Dr Douglas's announcement.